ASX: WGX Corporate Update June 2021 - AFR
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ASX: WGX Corporate Update June 2021
COMPLIANCE STATEMENTS Competent Persons Statements The information in this report that relates to Exploration Results and Mineral Resources and Ore Reserves is based on information compiled Mr Jake Russell B.Sc. (Hons) MAIG and Anthony Buckingham B.Eng (Mining Engineering) MAusIMM. Both have sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the 2012 Editions of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012)”. Both consent to the inclusion in this report of the matters based on his information in the form and context in which it appears. All are full time senior employees of the Company and are eligible to, and may participate in short- term and long-term incentive plans of the Company as disclosed in its annual reports and disclosure documents. Exploration and Production Target Statement The information in this report that relates to exploration targets refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Production targets and mine designs are presented with the best of the knowledge and situation at this point in time and may change in the future. General Disclaimer This presentation has been prepared by Westgold Resources Limited (“Westgold” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation contains forecasts and forward looking statements. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied. Westgold has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Westgold makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. This overview of Westgold does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.
Investment Synopsis
Domestic Gold Producer, WA Murchison Focus
Focused ASX 200, GDX, GDXJ
Increasing Output Strong Balance Sheet – >A$178m in cash, no corporate debt
Self-sufficient
Self-sufficient, Owner Operator, Substantial Fixed Assets and Fleet
Fiscally Strong
Long Life Mines – Substantial Resource & Reserves
Long Life
High Margin Increasing Output, Increasing Margins, Reducing Capex
Committed, Focused, Responsible Miner, Track Record
Corporate Snapshot
ASX: WGX (ASX200, GDX, GDXJ)
FPO Shares on Issue: 423.86 million ($2.40/sh)
Focused
2.32 million ZEPO & Employee Perf. Rights
Increasing Output
Self-sufficient Market Capitalization: ~A$ 960 million
share price $2.27 (26/5/21) (~US$775 million)
Fiscally Strong
Long Life Cash & Bullion: $178 million (as at March 31, 2021)
High Margin
Corporate Debt: Nil ~ $30m equipment leasing
Cash & Bullion: $178 million (as at March 31, 2021)
Board & Executive Management
Board of Directors:
Executive Chair (Trans’n): Peter Cook
Focused
Independent NED: Fiona Van Maanen
Increasing Output
Independent NED: Peter Schwann
Self-sufficient
Independent NED: Wayne Bramwell
Fiscally Strong
Co Sec: Lisa Smith
Long Life
High Margin Executive Management:
CEO: Debbie Fullarton
COO: Anthony Buckingham
Murchison Gold Operations – Our Core Business
Aggregating a Gold Province – 22.9 million oz historic production and remaining resources.
FGO
335 Mining Titles
>1,130 Sq Km
MGO
FGO
MGO
CGO
CGO
Murchison Gold Operations – Our Core Business
• Regionally dominant land holdings
Focused
• 3 plants, 4Mtpa installed capacity
7 U/g Mines
• Big Resource Base (8.8Moz @ June 30, 2020)
4 Open Pits
• 9yr + Reserves (2.5Moz @ June 30, 2020)
3 Process plants
• 270 – 300,000 ozpa baseline output
4 Villages
• C1 Cash Costs: approx. A$1,100/oz (long term average)
Surface & U/g Fleet
• AISC: A$1,400/oz (long term average)
• Owner operator mining
Fortnum Gold Operations – A snapshot!
• 3 Major Gold Production Fields:
• Labouchere
• Fortnum
• Peak Hill
• Simple Metallurgy
• CIP Plant capacity of 0.9Mtpa
• Current Ore Feed :
Starlight U/g Mine ~ 700 kt @ 3.0+ g/t
Open Pit/Stocks ~ 200kt @ 1.2 g/t
• Gold Output: 65 - 70,000 oz @ AISC
A$1,300/oz
• Total IMR (June 2020): 1.32 million oz
• Total MR (June 2020): 398,000oz
Central Murchison Area – MGO & CGO
CMGP - Focus
5 U/g Mines (Operating)
4 U/g mines (planned)
Several Open Pits
2 Process plants Steady Profile: Steady Profile:
110,000 – 120,000 oz p.a. 95,000 – 105,000 oz p.a.
3 Villages C1 Cash Costs: $1,250 - $1,350/oz C1 Cash Costs: $1,100 - $1,200/oz
Surface & U/g Fleet AISC: $1,500 -1,600/oz AISC: $1,250 - $1350/oz
Total Resource (MGO & CGO): 7.48 million oz
Total Reserve (MGO & CGO): 2.16 million oz
Operating Life : 9 years +
Output Growth In The Murchison
250000
Focused
200000
Increasing Output 104088
94280
270,000
Self-sufficient 150000 250,000+ to
300,000
Fiscally Strong 100000
112430
70223
68255
Long Life
50000 101261
8917
60839
High Margin 41820
58308
0 0
2061
FY2017 FY2018 FY2019 FY2020 FY2021(f) CY2021
CY2020
Guidance
FGO CGO MGOForward Guidance (CY 2021 guidance advised 20/1/2021)
Gold Sales 270,000 – 300,000 oz
Focused
Increasing Output
Self-sufficient Note: Back-end skewed along with ramp-ups
Fiscally Strong
Quarter Sales C1 Cash Cost AISC
Long Life
High Margin
Still believe on track for CY guidance (COVID pending)Owner Operator - Underground Mining Services Focused Increasing Output Self-sufficient Fiscally Strong Long Life High Margin
Owner Operator - Open Pit Mining Services
Focused
Increasing Output
Self-sufficient
Fiscally Strong
Long Life
High Margin
UNIQUE - OWNER MINEREfficiency Gains - Reducing Unit Costs
• Owner-operators: high fixed cost business.
• Operating expenditure (ex-growth essentially fixed).
Focused • As output increases unit costs decrease.
Increasing Output • Westgold costs have been reducing – industry increasing.
Self-sufficient 70,000
Quarterly Gold Prod'n and A$ Cost of Sales 1,800
60,000 1,500
Fiscally Strong
50,000
1,200
Qtr Prod'n Oz
Cost Per Oz
Long Life 40,000
900
30,000
High Margin 20,000
600
10,000 300
0 -
Mar Q 2020 Jun Q 2020 Sep Q 2020 Dec Q 2020
Gold Sales 53,265 66,234 60,030 65,167
C1 Cash Cost/oz 1,275 1,299 1,202 1,046
AISC/oz 1,525 1,638 1,459 1,293Fix the Operating Costs – Ride the Margin
3,000
$2,350/oz
Focused 2,500
$2,088/oz
A$800/oz (e)
A$ Gold Price/oz
Increasing Output 2,000 $1,768/oz A$570/oz
AISC Margin
$1,627/oz A$378/oz AISC Margin
$1,614/oz
Self-sufficient AISC Margin
1,500
Fiscally Strong
1,000
Long Life
High Margin 500
0
FY2017 FY2018 FY2019 FY2020 FY2021 Fcst
C1- Cash Cost AISC Achieved Gold PriceGrowth Capex - Shifting to Sustaining
18 Big Bell
Focused 14 ramp-up
26
Increasing Output 16
70
86
$' millions
Self-sufficient 90
60
20
Fiscally Strong 25 2
47
80 54
2 9 30
Long Life
5
47 45 17
28 23 17 18
High Margin FY2017 FY2018 FY2019 FY2020 FY2021 FCST FY2022 FCST
P&E Other Gold Op's P& E Big Bell
MP&D (big bell) MP&D
Expl & Eval'nScorecard Improving – HY Dec 2020 Results Focused Increasing Output Self-sufficient Fiscally Strong Long Life High Margin
Financially Engineered for Success
Strong Cash & Bullion
Spares, Ore Stocks & GIC
Focused
3 Process Plants, 4
camps o/pit & u/g mining
Increasing Output fleet
7 Underground mines,
Self-sufficient 5 open pits
6.25 million oz of
Fiscally Strong resource not in reserves
Long Life Prov’n Enviro Rehab
Mine Equipment leases
High Margin ROU contracts
A 10 year Regional Project
with
No Corporate DebtESG – Our Footprint (from our June 30, 2020 ESG Report)
1
Focused 950Trading Comparatives
2021 Forecast– World Gold Stocks
Size P/E (avg) P/CF (avg) EV/EBITDA (avg)
Large Caps (>$10bn US) 15.6 8.7 24.0
Upside
Mid Caps (>$2bn < $10bn US) 14.0 7.3 14.4
MEDIUM SMALL CAPs
Small Caps (>$1bn US)
CAPs 14.0 6.6 16.3
< 350k Oz pa
350k – 1m
Oz pa
Small Caps (< $1bn US) 13.8 8.9 24.7
Westgold 8.2 3.5 3.1
Source Data: Refinitiv ( from Thomson Reuters May 2021)Investment Synopsis
Domestic Gold Producer, Murchison WA Focus
ASX 200, GDX, GDXJ
Focused
Increasing Output Strong Balance Sheet – >A$178m in cash, no corporate debt
Self-sufficient
Self-sufficient, Owner Operator, Substantial Fixed Assets and Fleet
Fiscally Strong
Long Life Mines – Substantial Resource & Reserves
Long Life
High Margin Increasing Output, Increasing Margins, Reducing Capex
Committed, Focused, Responsible Miner, Track RecordResource & Reserves Summary
(@ June 30, 2020) – JORC 2012
Focused
Increasing Output
Self-sufficient Total Resource
8.8 Million Oz’s
Fiscally Strong
Long Life
High Margin
Total Reserves
2.56 Million Oz’sYou can also read
